CIM Dividend
Although CIM has a dividend of 0.50 with an ex-dividend date of Sep 27, you can sell covered calls on CHIMERA INVESTMENT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:45 AM ET):
| CHIMERA INVESTMENT (CIM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 18.68 | 18.69 | 18.68 | +0.09 | 65K | 6.1 | 3.5B |
CIM Dividend-Like Income Using Covered Calls
With CIM at 18.68, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 0.56 | 0.2 |
| 5% | 0.93 | 0.3 |
| 10% | 1.87 | 0.5 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Aug 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | XLF dividend | 1. | NVDA dividend | |
| 2. | EEM dividend | 7. | FB dividend | 2. | AMAT dividend | |
| 3. | QQQ dividend | 8. | FXI dividend | 3. | JWN dividend | |
| 4. | BAC dividend | 9. | GLD dividend | 4. | GDS dividend | |
| 5. | SPX dividend | 10. | AABA dividend | 5. | TUR dividend | |
Want more examples? CIG Dividend | CINF Dividend
